Bitcoin Miners’ Reserves Deplete Amidst High OTC Selling, What This Means

Source Newsbtc
Jun 20, 2024 20:00

Recent data from CryptoQuant has highlighted a significant shift in Bitcoin Miners behavior, with miner reserves dropping to their lowest levels since 2010 while over-the-counter (OTC) selling activity has surged to higher levels.

What This Means For BTC

At the beginning of the year, miner reserves stood at approximately 1.87 million BTC but have yet to grow to about 1.81 million BTC today, a level not seen since 2010. This reserve decline is notable as it indicates a higher propensity for miners to sell off their holdings.

Bitcoin miner reserves

Typically, this could lead to increased market supply and potential price depreciation, but the scenario has unfolded differently this year.

Despite the drop in miner-held BTC, the value of these reserves remains high, buoyed by a nearly 150% price increase since October last year, keeping the total dollar value of miner holdings near all-time highs at over $130 billion.

Additionally, data from CryptoQuant indicates that Bitcoin miners’ over-the-counter (OTC) sales have peaked daily since March.

Bitcoin miner OTC selling.

Bitcoin In The Spotlight

This miner activity comes amid broader market movements that have seen significant price fluctuations. BTC’s price has retreated by nearly 7% in the past day, dropping from a peak of $66,436 to around $65,269.

Bitcoin (BTC) price chart on TradingView

The decrease aligns with a general volatility trend that has recently characterized the crypto market. Analyst Willy Woo commented on the situation, indicating that BTC might not see new highs until the current phase of miner capitulation and market boredom resolves, which historically precedes a significant rally.

Meanwhile, MicroStrategy, a major corporate backer of BTC, has continued its strategy of accumulating Bitcoin amidst these market conditions. Following a recent fundraising effort through the sale of $800 million in convertible notes, the company has added 11,931 bitcoins to its holdings.

This acquisition, conducted at an average price of $65,883 per bitcoin, brings MicroStrategy’s total holdings to 226,331 bitcoins, acquired at an aggregate cost of approximately $8.33 billion, reflecting an average price of $36,798 per bitcoin.

Featured image created with DALL-E, Chart from TradingView

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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